Gold Price Forecast – Gold Markets Continue to Look for Buyers

Christopher Lewis
Published: May 29, 2023, 15:27 GMT+00:00

Gold markets were sluggish during Monday’s trading session, but that’s not a huge surprise considering it was Memorial Day.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 30.05.23

Gold Market Technical Analysis

Gold markets have gone back and forth during trading on Monday, but that’s not a huge surprise considering that it was Memorial Day in the United States; therefore, many traders will have been away from their desks. It’s worth noting that we are between the 50% Fibonacci retracement level and the 61.8% Fibonacci level, an area that attracts much attention. If we can continue to rally from here, we may see a move toward the 50-Day EMA, which is closer to the $1980 level. In that scenario, we have the potential recovery of the overall uptrend. After all, there are many concerns about the preservation of wealth right now, and of course, gold has a major part to play in that.

On the other hand, we have to keep in mind that the interest rates rising hurt gold in general, so that could have a certain amount of effect on what’s going on. That being said, I would make a certain amount of sense that we bounce around in this area because those who are bullish on gold will probably be tentative about getting long at this point. Those who want to be short will probably be aware of the fact that we are approaching an area of potential noise, and it’s also worth noting that the market is between the 50-Day EMA and the 200-Day EMA indicators, which of course, typically causes a bit of noise anyway.

With that being said, I think this situation could see a lot of volatility, but I do like the idea of picking up “cheap gold.” Still, I would do so in very small amounts, as the volatility will probably continue to be a major issue. With this, I like the idea of slowly reentering the market to the upside, and I don’t really have any interest in shorting, at least not yet. That being said, if we do see precious metals fall apart, silver will be the short I go to as it does tend to fall much quicker than gold does as it also has an industrial component built into it as well. At this point, I will be paying close attention to moves to the upside.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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